New Lifetime High For UNS Energy (UNS)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified UNS Energy ( UNS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified UNS Energy as such a stock due to the following factors:

UNS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.5 million.

UNS Energy Corporation, through its subsidiaries, is engaged in the electric generation and energy delivery business. The stock currently has a dividend yield of 3.2%. UNS has a PE ratio of 19.3. Currently there is 1 analyst that rates UNS Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for UNS Energy has been 285,300 shares per day over the past 30 days. UNS Energy has a market cap of $2.5 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.52 and a short float of 9.6% with 11.67 days to cover. Shares are up 1.2% year-to-date as of the close of trading on Tuesday.

TheStreet Quant Ratings rates UNS Energy as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

UNS ENERGY CORP has improved earnings per share by 37.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNS ENERGY CORP increased its bottom line by earning $3.04 versus $2.20 in the prior year. This year, the market expects an improvement in earnings ($3.28 versus $3.04).

The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Electric Utilities industry average. The net income increased by 36.4% when compared to the same quarter one year prior, rising from $11.35 million to $15.48 million.

Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 0.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, UNS ENERGY CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.